Boxoffice - May 2019

READING INTERNATIONAL INC’S
(RDI) consolidated revenue for the fourth
quarter of 2018 increased 4 percent to
$75.0 million, an all-time record for any
fourth quarter in the company’s operating
history. The record-setting Q4 was primarily
driven by several factors, including
year-over-year increases in attendance,
box office, and F&B (food & beverage)
revenue in the circuit’s U.S., Australian,
and New Zealand–based cinemas.
Other positive factors cited by the
company were the opening of its new
state-of-the-art eight-screen Reading Cinema
on December 14, 2017, at Newmarket
Village (in Australia) and operational
benefits stemming from the organization’s
past investments between 2016 and 2018
in cinema upgrades.
Ellen Cotter, chair, president, and chief
executive officer, commented, “Our record
revenue and operating income in 2018
demonstrate the important progress we are
delivering on our strategic plan across our
cinema and real estate businesses. We have
solid momentum in our global cinema
segment. Our initiatives to deliver superior
guest experiences helped us outperform
the strong industry box office.
“Our audiences embraced the addition
of recliner seating and Titan screens to select
cinemas across our global circuit. Our
income was further improved by success
with our food and beverage initiatives,
innovative pricing, and digital strategies.
And we are pleased with our progress on
44 Union Square. We remain focused on
building upon our strong performance to
enhance long-term value for our stockholders,”
Cotter concluded.
Back in November 2018, Patton Vision
LLC and its consortium of investors proposed
an offer to acquire 100 percent of
the outstanding equity interests of Reading
International for cash at an aggregate price
equivalent to $595.2 million in total enterprise
value, which assumed total net debt
of $151.1 million and resulted in a total
equity value of $444.0 million.
At the time, this equity value reflected
a 20 percent premium to RDI’s aggregate
equity value, based on closing market
prices for the aggregate Class A and Class
B common stock. This offer constituted
an increase in equity value to a previous
offer from Patton Vision.
In March 2019, Patton Vision issued
a statement continuing to urge the RDI
board of directors to retain advisers
and “engage in meaningful discussions
regarding our proposed purchase offer
and to permit us to clarify any questions
or misunderstandings.”
MAY 2019
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